Problem 22-1A Your answer is partially correct. Try again. Bumblebee Company estimates that 402,600 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year Fixed Overhead Costs Variable Overhead Costs Supervision Depreciation Insurance Rent Property taxes $169,092 80,520 40,260 60,390 40,260 $390,522 $89,280 Indirect labor 73,440 Indirect materials 26,040 Repairs 21,360 Utilities 22,440 Lubricants $232,560 It is estimated that direct labor hours worked each month will range from 22,800 to 32,100 hours During October, 22,800 direct labor hours were worked and the following overhead costs were incurred Fixed overhead costs: Supervision $7,440, Depreciation $6,120, Insurance $2,125, Rent $1,780, and Property taxes $1,870 Variable overhead costs: Indirect labor $10,566, Indirect materials, $4,260, Repairs $2,240, Utilities $3,740, and Lubricants $2,640 (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs. BUMBLEBEE COMPANY Packaging Department Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Activity Level 22,800 32,100 25,900 29,000 Direct Labor Hours Variable Costs Indirect Labor 9,576 4,560 3,420 2,280 2,280 10,878 12,180 13,482 6,420 5,800 Indirect Materials 5,180 Utilities 3,885 2,590 2,590 25,123 4,350 4,815 3,210 3,210 Lubricants Repairs Total Variable Costs 2,900 2,900 28,130 22,116 31,137 Fixed Costs 2,280 2,590 2,900 3,210 Repairs 22,116 25,123 28,130 31,137 | Total Variable Costs Fixed Costs Supervision 5,056 5,744 6,431 7,118 Depreciation 4,159 4,725 5,290 5,855 2,076 Insurance 1,475 1,675 1,876 Rent 1,210 1,374 1,539 1,703 1,271 1,616 1,789 Property Taxes 1,444 16,752 13,170 14,961 18,542 | Total Fixed Costs 44,882 35,286 40,084 49,679 Total Costs (b) Prepare a flexible budget report for October. (List variable costs before fixed costs.,) (D) Prepare a TIeXIDle budget report ror october. (1st variab/e costs Derore TIxed costs BUMBLEBEE COMPANY Packaging Department Manufacturing Overhead Flexible Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 22,800 22,800 Direct Labor Hours Variable Costs 980 Unfavorable 9,576 10,556 Indirect Labor Indirect Materials 4,560 4,260 300 Favorable 320 Unfavorable Utilities 3,420 3,740 Lubricants 2,280 2,640 360 Unfavorable 2,280 2,240 40 Favorable Repairs 22,116 23,436 1,320 Unfavorable Total Variable Costs 23,436 22,116 1,320 Unfavorable Total Variable Costs Fixed Costs Supervision Depreciation Insurance Property Taxes Total Fixed Costs Total Costs Click if you would like to Show Work for this question: Open Show Work
